Which of the Following Statements Regarding Self-Employed Retirement Accounts Is

question 62

Multiple Choice

Which of the following statements regarding self-employed retirement accounts is true?

• A)A self-employed taxpayer who has hired employees may not set up a SEP IRA.
• B)A self-employed taxpayer who has hired employees may set up either a SEP IRA or an individual 401(k).
• C)A self-employed taxpayer who has hired employees may not set up an individual 401(k).
• D)All of these choices are correct.

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Definitions:

Annuity Due

A series of equal payments made at the beginning of consecutive periods over a fixed length of time.

Payments

Payments refer to the transfer of money from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Perpetuity

A type of annuity that pays an infinite series of equal payments, with no end.

Regular Payments

Periodic payments made consistently over time, such as monthly mortgage or loan repayments, or dividend payouts to shareholders.